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Temporary trustee-manager to take steps for appointment of new trustee-manager

Business Trusts Regulations

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—(1) For the purposes of section 22 of the Act, the temporary trustee-manager of a registered business trust shall, as soon as practicable and, in any event, within 3 months of becoming such temporary trustee-manager —(a)call one or more meetings of the unitholders of the registered business trust for the purpose of having the unitholders, by resolution, appoint a company which has consented in writing to serve as the replacement trustee-manager of the registered business trust and which satisfies the requirements under section 6 of the Act; and(b)use its best efforts to initiate and facilitate the nomination of a company or companies which unitholders may, by resolution, appoint as the replacement trustee-manager of the registered business trust.(2) For the purposes of paragraph (1)(a), a company which has consented in writing to serve as the replacement trustee-manager of the registered business trust may be appointed only if the resolution for such appointment is approved by unitholders of the registered business trust holding in the aggregate not less than a majority of the voting rights of all the unitholders of the registered business trust who, being entitled to do so, vote in person or where proxies are allowed, by proxy present at the meeting of the unitholders of the registered business trust.(3) If the unitholders of a registered business trust do not approve the appointment of any of the companies nominated under paragraph (1) to act as the replacement trustee-manager by the end of the period of 3 months referred to in that paragraph, the temporary trustee-manager of the registered business trust shall, within 7 days from the end of that period, apply to the court for either of the following:(a)an extension of the period of its appointment for the purposes referred to in paragraph (1)(a) and (b); or(b)an order directing the temporary trustee-manager to wind up the registered business trust.(4) If the unitholders of a registered business trust do not appoint any of the companies nominated under paragraph (1) (including such companies nominated during any period of extension granted by the court under paragraph (3)(a)) to act as the replacement trustee-manager by the end of that period of extension, the temporary trustee-manager of the registered business trust shall, within 7 days of the expiry of that period of extension, apply to the court for an order directing the temporary trustee-manager to wind up the registered business trust.(5) The court may, on application by the temporary trustee-manager of a registered business trust under paragraph (3)(b) or (4), make an order directing the temporary trustee-manager to wind up the registered business trust if it is satisfied that the unitholders of the registered business trust have been unable to appoint a replacement trustee-manager at the meeting or meetings which were convened by the temporary trustee-manager within the period of 3 months referred to in paragraph (1) or the period of extension referred to in paragraph (4), as the case may be.(6) The replacement trustee-manager of a registered business trust shall —(a)within 7 days after the passing of the resolution of its appointment by unitholders —(i)lodge a notice with the Authority notifying it of the resolution and the effective date of the change; and(ii)inform all the unitholders of the registered business trust of the resolution and the effective date of the change; and(b)within 14 days after its appointment as the replacement trustee-manager of the registered business trust takes effect, or such other period of time as may be specified by the Authority, provide notice of the change to the other parties to the documents and agreements referred to in section 25(1) of the Act.(7) If the temporary trustee-manager of a registered business trust fails to apply to the court for a direction under paragraph (3) or (4), a unitholder of the registered business trust may apply to the court for an order directing the temporary trustee-manager to wind up the registered business trust.(8) The court may, upon an application made by a unitholder of a registered business trust under paragraph (7) —(a)make an order directing the temporary trustee-manager to wind up the registered business trust; and(b)make such order as it deems fit for the unitholder to be compensated out of the trust property of the registered business trust for any costs incurred in making the application.(9) The temporary trustee-manager of a registered business trust which contravenes paragraph (3) or (4) shall be guilty of an offence.(10) The replacement trustee-manager of a registered business trust which contravenes paragraph (6) shall be guilty of an offence.

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